Deela Fashion in Detroit operates three departments: Men's, Women's, and Accessories. Deela Fashion allocates all fixed operating income data for the third quarter of the current year are as follows: B Click the icon to view the data.) The store will remain in the same building regardless of whether any of the departments are discontinued. Should Deela Fa Deela Fashion allocates all fixed expenses (unavoidable building depreciation and utilities) based on each department's square footage. Departmental are discontinued. Should Deela Fashion discontinue any of the departments? Give your reason. The Men's and Women's Departments are earning income. While the Accessories Department appears to be even this department has a positive contribution margin. The Accessories Department is contributing covering fixed costs losing money, toward whethe Deela Fashion intends to remain in the same building whether or not it discontinues any of the departments. Consequently, the fixed costs will remain the same therefore irrelevant in the decision whether to eliminate a department In sum, Deela Fashion should keep all the departments of the departments. Consequently, the fixed costs will remain the same whether or not Deela Fashion eliminates a department. These fixed costs are E A B 1 Deela Fashions 2 Product Line Contribution Margin Income Statement 3 For the Year 4 hi 5 Product lines Women's Accessories Company Total 56,000 $ 98,000 $ 261,000 28,000 92,000 178,000 6 Sales revenue Men's 107,000 $ 58,000 $ 7 Less: Variable expenses 8 Contribution margin $ 49,000 $ 26,000 28,000 $ 18,000 6,000 $ 25,000 83,000 69,000 9 Less: Fixed expenses $ 23,000 $ 10,000 $ (19,000) $ 14,000 10 Operating income